How Tradelines Can Impact Your Credit

The Right Tradelines Can Help Rebuild Your Credit

Your credit score is affected by a wide variety of factors, from the types of tradelines you have open to how much of your line of credit you use in a month to whether you pay your bills on time or not. While each piece of your credit report factors into the entire score, tradelines can influence your credit almost as much as your payment history, so understanding their impact should be one of your first steps to fix your credit score.

Number of Tradelines

In order to determine your risk, creditors like to see a long history of loan repayment, as well as several unique tradelines. If the only loan you’ve ever had was a mortgage or a student loan, creditors won’t know how you will handle more than one payment per month. Because of this, your credit score can increase as you add tradelines to your report, but you have to be careful. A dozen tradelines can be harmful if they are all relatively new accounts.

Types of Tradelines

In a similar way, the types of tradelines on your report can impact your credit score. Again, if you only have a mortgage and a car payment every month, creditors won’t know how you handle variable monthly payments that come with a revolving line of credit such as a credit card.

At Empowerment Financial Group, we are dedicated to making sure that you have all the tools you need to start rebuilding your credit. We will take an in-depth look at your credit history, your credit report from each bureau, and your income, and determine whether adding tradelines can help you fix your credit score. Learn more and contact us today for your free credit repair consultation.